Question

Doak Corp. is evaluating a project with the following cash flows. The company uses a discount rate of 11 percent and a reinvestment rate of 8 percent on all of its projects.

Year	Cash Flow
0		–$	32,600
1			11,520
2			14,670
3			11,270
4			10,940
5		–	4,230

Calculate the MIRR of the project using all three methods with these interest rates. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)

Combination Approach is 10.98%

I got 12.61% for discounting approach and 13.83 for reinvesting and they aren't correct. Please Help!!

Answer 1

1.
Discounting Approach
=IRR({-32600-4230/1.11^5;11520;14670;11270;10940;0})
=14.52%

2.
Reinvesting Approach
=IRR({-32600;0;0;0;0;-4230+11520*1.08^4+14670*1.08^3+11270*1.08^2+10940*1.08})
=10.98%

3.
Combination Approach
=IRR({-32600-4230/1.11^5;0;0;0;0;11520*1.08^4+14670*1.08^3+11270*1.08^2+10940*1.08})
=10.98%